Lawmakers to meet for special session on Honolulu rail funding

Lawmakers will gather at the state Capitol Monday for a special legislative session on how to fund Honolulu’s troubled rail project.

Senate Bill 4, a rapid transit financing bill, is the only proposal under consideration.

Last week, lawmakers were calling their funding bill a breakthrough compromise to bail out Honolulu’s rail project, but whether it has the support needed to pass remains unclear as city leaders continue to insist the proposed deal leaves the project at least $600 million short.

The compromise extends the existing half-percent general excise tax surcharge on Oahu for three additional years through 2030, which will generate about a billion dollars.

It also raises the statewide hotel room tax, or TAT, 1 percent for the next 13 years — which equates to about $1.3 billion for upfront construction costs. To help please the neighbor islands, the counties’ share of the hotel tax goes up from $93 to $103 million.